first you need the monthly payment
PV = 90000
i = .09/12 = .0075
n = 12x30 = 360
90000 = Payment [ 1 - 1.0075^-360]/.0075
payment = 724.16
balance right after 120th payment
= 90000(1.0075)^120 - 724.16( 1.0075^120 - 1)/.0075
= 80486.77
interest on next month = 80486.77(.0075) = 603.65
Hey guys! really need help with this one!!!
On December 31, 1995, a house is purchased with the buyer taking out a 30-year $90,000 mortgage at 9% interest compounded monthly. The mortgage payments are made at the end of each month. Calculate:
(A) the unpaid balance of the loan on December 31,2005, just after the 120th payment.
(B) the interest that will be paid during January 2006.
Thanks in advance!
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